Choosing your legal status as a freelance recruiter

When you start freelancing after a career as an employee, choosing the right legal status is a decisive step. This choice impacts on administrative management, taxation and the perception of your professional activity. Here's a detailed guide to the different legal statuses for a freelance recruiter, with a focus on their advantages and disadvantages.

1. Self-Entrepreneur: The First Step to Independence

The auto-entrepreneur status is often the first choice for its simplicity and tax advantages.

Advantages: Ideal for starting up with few formalities, this status offers simplified accounting management and sales-based taxation, for greater predictability of expenses.

Disadvantages: Sales ceilings can restrict growth. Social security contributions, although proportional to sales, can weigh on profitability. In addition, social security coverage is less protective than that of an employee.

2. Sole Proprietorship (SP): For controlled expansion

Sole proprietorship is a natural evolution for those who go beyond the limits of auto-entrepreneurship.

Advantages: It offers greater freedom with uncapped sales and the possibility of deducting actual expenses, which can optimize taxation. The separation of personal and professional finances is clearer.

Disadvantages: Unlimited liability can be risky, exposing personal assets in the event of debts. Administrative management is more complex, often requiring the help of an accountant.

3. Single-member simplified joint stock company (SASU)

SASU is a strategic choice for a growing business requiring a more formal structure.

Advantages: Limited liability protects personal assets. The employee social security system is an asset, offering better social protection. This legal form is also perceived as more credible by customers and partners.

Disadvantages: Administrative complexity and operating costs are higher, including more stringent accounting and legal obligations, which may require expert support.

4. Simplified joint-stock company (SAS)

The SAS is an appropriate option for those wishing to join forces with other freelancers.

Advantages: It offers great flexibility in the organization and distribution of profits, while limiting the liability of associates to their contributions. This structure is ideal for collaborative projects, and allows for growth and development in line with the company's ambitions.

Disadvantages: Management is more cumbersome and operating costs are significant. Legal and accounting obligations often require the involvement of professionals, increasing overheads.

5. Portage Salarial: a balance between independence and security

Portage salarial is a hybrid solution that combines the independence of freelancing with the security of salaried employment.

Advantages: It offers peace of mind, with administrative management delegated to the freelance administration company and full social security coverage. It's an ideal option for those starting out as freelancers or looking to minimize administrative risks.

Disadvantages: Management fees can be substantial, and this formula offers less freedom in negotiating rates and managing customers.

The choice of legal status as a freelance recruiter depends on many factors: volume of activity, appetite for risk, social protection needs, and growth prospects. Each legal status has its own specificities, and it's important to understand them in order to make an informed choice. Once again, get in touch with your seasoned colleagues to support you in your decision. And if you still can't make up your mind, you can also meet with an expert for a personalized analysis, to find the status that best suits your needs and professional ambitions.

PS: a word of advice: once you've decided on the status you need, get some help in setting it up. Some companies will take care of it for you for a few hundred euros, and save you a lot of administrative to-ing and fro-ing, which you don't need when you're just starting out!